GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
115.45 USD
+1.66 (+1.46%)
115.45 USD
0 (0%)
We assign a fundamental rating of 6 out of 10 to GVA. GVA was compared to 55 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. GVA is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, GVA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year GVA was profitable.
GVA had a positive operating cash flow in the past year.
GVA had positive earnings in 4 of the past 5 years.
In the past 5 years GVA always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 4.40%, GVA perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
With a decent Return On Equity value of 15.79%, GVA is doing good in the industry, outperforming 61.11% of the companies in the same industry.
GVA has a Return On Invested Capital (6.20%) which is in line with its industry peers.
GVA had an Average Return On Invested Capital over the past 3 years of 3.67%. This is significantly below the industry average of 18.23%.
The last Return On Invested Capital (6.20%) for GVA is above the 3 year average (3.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA has a Profit Margin of 4.31%. This is comparable to the rest of the industry: GVA outperforms 59.26% of its industry peers.
GVA's Profit Margin has improved in the last couple of years.
GVA has a Operating Margin (6.08%) which is in line with its industry peers.
GVA has a Gross Margin of 16.39%. This is comparable to the rest of the industry: GVA outperforms 46.30% of its industry peers.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), GVA is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
GVA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, GVA has a worse debt to assets ratio.
2.2 Solvency
GVA has an Altman-Z score of 2.58. This is not the best score and indicates that GVA is in the grey zone with still only limited risk for bankruptcy at the moment.
GVA has a Altman-Z score of 2.58. This is comparable to the rest of the industry: GVA outperforms 48.15% of its industry peers.
GVA has a debt to FCF ratio of 3.86. This is a good value and a sign of high solvency as GVA would need 3.86 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 3.86, GVA is doing good in the industry, outperforming 64.81% of the companies in the same industry.
A Debt/Equity ratio of 0.84 indicates that GVA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, GVA perfoms like the industry average, outperforming 42.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.62
WACC9.94%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA's Current ratio of 1.21 is in line compared to the rest of the industry. GVA outperforms 44.44% of its industry peers.
A Quick Ratio of 1.12 indicates that GVA should not have too much problems paying its short term obligations.
GVA has a worse Quick ratio (1.12) than 64.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.71% over the past year.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
Looking at the last year, GVA shows a small growth in Revenue. The Revenue has grown by 6.87% in the last year.
Measured over the past years, GVA shows a small growth in Revenue. The Revenue has been growing by 6.57% on average per year.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
Based on estimates for the next years, GVA will show a very strong growth in Earnings Per Share. The EPS will grow by 22.48% on average per year.
The Revenue is expected to grow by 9.62% on average over the next years. This is quite good.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 19.67, which indicates a rather expensive current valuation of GVA.
81.48% of the companies in the same industry are more expensive than GVA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of GVA to the average of the S&P500 Index (26.38), we can say GVA is valued slightly cheaper.
Based on the Price/Forward Earnings ratio of 18.43, the valuation of GVA can be described as rather expensive.
GVA's Price/Forward Earnings ratio is rather cheap when compared to the industry. GVA is cheaper than 83.33% of the companies in the same industry.
GVA is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.83, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 18.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued a bit cheaper than 74.07% of the companies in the same industry.
83.33% of the companies in the same industry are more expensive than GVA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.55 | ||
| EV/EBITDA | 13.37 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 22.48% in the coming years.
PEG (NY)0.51
PEG (5Y)0.6
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, GVA is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 0.40, GVA pays a better dividend. On top of this GVA pays more dividend than 87.04% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, GVA's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has been paying a dividend for at least 10 years, so it has a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
12.45% of the earnings are spent on dividend by GVA. This is a low number and sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
115.45
+1.66 (+1.46%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners119.35%
Inst Owner Change3.25%
Ins Owners1.09%
Ins Owner Change-0.65%
Market Cap5.04B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts80
Price Target132.8 (15.03%)
Short Float %10.81%
Short Ratio7.49
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-1.36%
PT rev (3m)0.67%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-10.16%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.67 | ||
| Fwd PE | 18.43 | ||
| P/S | 1.19 | ||
| P/FCF | 14.55 | ||
| P/OCF | 10.9 | ||
| P/B | 4.36 | ||
| P/tB | 8.64 | ||
| EV/EBITDA | 13.37 |
EPS(TTM)5.87
EY5.08%
EPS(NY)6.26
Fwd EY5.43%
FCF(TTM)7.94
FCFY6.87%
OCF(TTM)10.59
OCFY9.18%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.51
PEG (5Y)0.6
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.58 |
F-Score7
WACC9.94%
ROIC/WACC0.62
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.54%
EBIT Next 3Y40.17%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
What is the valuation status of GRANITE CONSTRUCTION INC (GVA) stock?
ChartMill assigns a valuation rating of 6 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Fairly Valued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 19.67 and the Price/Book (PB) ratio is 4.36.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.